For those that believe it’s a bad time to buy a home, one of my clients closed today on their home and only had to bring $12K to the closing table. In a normal/balanced market, the buyer typically needs to come up with approx. 10% of the purchase price.
When to buy a home really depends on YOUR financial situation. As I have always advised my clients, just because rates are high does not mean it’s a bad time to buy and just because rates are low does not mean it’s a good time to buy. As I have always advised my clients, if you have the ability and means to buy, then buy. Buying a home is a healthy/asset debt, something that will build you wealth (if done right).
This particular client was a first-time buyer and had limited cash to purchase. So the game plan was to find a home that has been sitting on the market for some time (60+ days). The idea is that if a seller lists their home, they are in a position where they have to sell. And with each passing day and sitting on the market, the seller becomes more and more pressed to sell sooner than later. We were able to work out where the seller of this home paid all the closing costs (buyer and seller), fixed things up around the house that were NOT required by insurance, and also offered seller credits to help pay for discount points. What normally would have been near $35K required of the buyer at closing was reduced to $12K.
EDIT:
Disclaimer: this strategy does NOT always work, as each deal/contract/closing is unique and different.
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Last edited by vtec to vvel; 04-10-2023 at 05:49 PM.
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